Ordinance 3304-12 - Laserfiche WebLink

activities outside the city if the income would be taxable under the service classification if received from activities within the city, less any exemptions or deductions available. 2. "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal Internal Revenue Code. 3. "Individual" means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. 4. "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. 5. "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. 6. "Service-taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. 7. "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. 8. "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. E. Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. is hereby amended to read as follows: 3.24.077 Allocation and apportionment of income when activities take place in more than one jurisdiction. Effective January 1, 2008, gross income, other than persons subject to the provisions of Chapter 82.14A RCW, shall be allocated and apportioned as follows: A. Gross income derived from all activities other than those taxed as service or royalties under Section 3.24.050(A)(7) shall be allocated to the location where the activity takes place. B. In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. Page 36 of 56